License plates are major moneymakers and marketing tools in Massachusetts, raising more than $5 million a year for various nonprofit groups across the state

Gerry Tuoti Wicked Local Newsbank Editor

License plates are major moneymakers and marketing tools in Massachusetts, raising more than $5 million a year for various nonprofit groups across the state.

“I view these funds as absolutely essential,” said Leo Cakounes, chairman of the Barnstable County Commissioners, who oversee an organization that uses revenue from the popular Cape and Islands specialty license plate to help cities and towns fund economic development programs and grants through the Cape Cod Economic Development Council.

Since Massachusetts began offering specialty plates in 1994, they have brought in more than $96 million for various nonprofit groups, according to a review of Registry of Motor Vehicles records. The RMV currently offers 28 specialty plates, raising money for a diverse array of causes, including state-run homes for veterans, professional sports teams’ charitable foundations, alternatives to abortion, the Massachusetts Environmental Trust Fund and cancer research.

Most of the specialty plates cost an additional $40 above normal registration fees. For most of the plate sales, $28 of that extra $40 goes to the associated charity or nonprofit. The remaining $12 covers the cost of manufacturing the plate.

When drivers renew their plates every two years, the full amount of the extra fee goes to the charity or nonprofit.

To create a specialty plate, a nonprofit group must collect 750 initial applications and deliver a $100,000 bond to the RMV, which will hold the bond for five years or until 3,000 specialty plates are issued. If fewer than 3,000 plates are issued during that initial five-year span, the RMV will discontinue the plates.

The statute changed in late 2015 to lower the minimum requirements for initial applications, potentially allowing smaller charities to pursue specialty license plates.

Featuring the silhouette of a Wampanoag man against the Mayflower, the Plymouth 400 specialty plate is one of the newest ones the RMV offers. The plate, which includes the slogan “An American Story. A National Legacy,” raises funds for the organization that’s planning a yearlong series of educational and cultural events to mark the upcoming 400th anniversary of the Pilgrims’ arrival in Plymouth in 1620.

Since the plate appeared in 2015, it has generated more than $100,000 in revenue for Plymouth 400.

“That revenue is definitely needed to create these programs and events,” said Michele Pecoraro, executive director of Plymouth 400.

After the 400th anniversary celebrations conclude, the plate will continue to raise money for various community causes. Pecoraro said her board of directors has not yet defined how the license plate proceeds will be used after 2020, but suggested the funds could potentially be awarded to nonprofit groups linked to culture and the arts.

Another new plate, which benefits the State Police Association of Massachusetts Benevolent Fund, has only been available since October. Proceeds from the plate will benefit state and local first responders and their families in times of need. The Association collected more than 1,500 initial applications for the new “protect and serve” specialty plate prior to its launch, surpassing the statutory requirement of 750 applications. The fund received its first payment of $41,188 last month, according to the RMV.

The State Police Association of Massachusetts Benevolent Fund is holding a gala and auction for low-number “protect and serve” plates Saturday at the Renaissance Boston Waterfront Hotel.

One of the oldest specialty plates, which features the tail of a right whale and a pair of Roseate terns, is also one of the most popular. The whale plate is one of three to benefit the state-run Massachusetts Environmental Trust Fund, which has awarded more than $17 million in grants since 1988 to protect water resources and restore ecosystems across the state. The fund was launched with an initial $2 million from the state Legislature, and is now funded nearly entirely by specialty license plate fees.

The Environmental Trust Fund has raised more than $23 million from its three specialty plates. In addition to the right whale plate, the fund also gets revenue from the “Fish and Wildlife” and “Blackstone Valley” plates.

The Cape and Islands plate, which features the Nauset lighthouse and the cliffs of Siasconet and Gayhead, has raised more than $24 million since its debut in 1995, more than any other specialty plate. The funds are divided between the Cape Cod Chamber of Commerce, the Cape Cod Economic Development Council and the Community Development Partnership. Those organizations have used the funds to support economic development, community cultural organizations, nonprofit youth programs and other groups.

Cities and towns on Cape Cod often use license plate-funded grants to leverage other sources of funding, such as state and federal grants.

“Down here on the Cape, we’re perceived as a wealthy community, but the reality is the majority of the people who live on the Cape are really dependent on seasonal jobs, landscaping jobs, maintenance jobs,” Cakounes said. “Economic development is an area I believe hasn’t been focused on as much as should have been. People who buy the plate should be thanked.”